Lending
Proprietary (Jumbo) Reverse Mortgages for Higher-Value Homes
Non-FHA reverse mortgages for higher-value homes: how they differ from a HECM and what to ask any lender.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
What is a proprietary reverse mortgage?
This page is general information, not legal, tax or financial advice for your situation. Rules can change, so every fact below names its source and date.
A proprietary reverse mortgage is one a private lender designs and backs on its own, without FHA insurance. The CFPB's page on types of reverse mortgages (last reviewed July 11, 2022) describes three kinds: FHA-insured HECMs, proprietary loans that are not federally insured and are typically designed for higher home values, and single-purpose loans from some state and local governments and nonprofits.
People often call proprietary loans "jumbo" reverse mortgages, because they're mostly used on homes worth more than the HECM limit. Each lender sets its own terms, so this page describes them generally. The details below are questions to ask, not promises.
Why would a homeowner look past a HECM?
The main reason is home value. A HECM figures your principal limit on a home value no higher than the national limit. HUD set that limit at $1,249,125 for 2026 case numbers (news release 25-145, December 11, 2025). If your home is worth well above that, a HECM ignores the extra value. A proprietary loan may count more of it.
Other reasons people compare them:
- a condo in a building that isn't FHA-approved,
- wanting to avoid FHA's mortgage insurance premiums, or
- a lender's different payout choices.
None of these makes a proprietary loan better by default. It's a different set of trade-offs.
How does a proprietary loan differ from a HECM?
The rules on our other reverse mortgage pages come from FHA and HUD. A proprietary loan doesn't have to follow them. That cuts both ways.
- Insurance: no FHA mortgage insurance, so no FHA premium. The lender sets its own rate and fees, so compare the full cost.
- Limits: the lender sets its own maximum home value and loan amount.
- Payouts: options vary. Some lenders offer a lump sum, some a line of credit. Ask whether any unused line grows, and how.
- Costs: no federal origination fee cap applies the way it does to a HECM. Compare offers line by line.
- Protections: HECM rules on non-recourse, heirs' 95% option and non-borrowing spouses come from federal HECM rules. Ask how each proprietary loan handles the same situations, and get it in writing.
Can you use a proprietary reverse mortgage on a condo?
Often that's a reason people look at one. A HECM on a condo requires the project to be acceptable to FHA under 24 CFR 206.51 (checked October 22, 2026), and many projects aren't. A proprietary lender uses its own condo standards. Ask the lender to review the specific project before you pay for an appraisal.
If you're thinking about buying a condo or a home in a 55+ community, check financing options for that exact address early. It can change which homes make sense.
What is the minimum age for a proprietary reverse mortgage?
It depends on the lender and on state law. A HECM requires the youngest borrower to be at least 62 (24 CFR 206.33). Some proprietary programs set different ages in some states. Ask each lender what age applies in California and for your home, and how a younger spouse is treated.
What should you ask any proprietary reverse mortgage lender?
- Is the loan non-recourse? Will my heirs ever owe more than the home sells for?
- What happens to my spouse if I die first and they're not on the loan?
- How long will my heirs have to sell or pay off the loan?
- Which payout options do you offer, and does an unused line of credit grow?
- What are all the upfront costs, and what is the rate or margin?
- Is there a prepayment penalty?
- Do you require a set-aside for taxes and insurance?
- Do you require independent counseling? (We recommend it either way.)
- Can I see the loan documents before I commit?
NCOA's guide (July 21, 2026) notes that federal law bars lenders from requiring you to buy another financial product, such as an annuity or insurance, to get a reverse mortgage. Never feel pressured to sign.
How do you compare a proprietary loan with a HECM?
Run both for the same home and the same goal. Look at the money you can reach, the upfront cost, how fast the balance could grow, and the protections for your spouse and heirs. Then look at the alternatives too: a home equity line of credit, a refinance, or selling and buying something smaller.
See our reverse mortgage costs page for how HECM costs and the principal limit work, so you have something to measure against.
How do you start comparing proprietary and HECM offers?
Fill out the loan options form and choose "A reverse mortgage," or call Maggie's cell at (916) 549-3131. As a mortgage broker, Maggie can look at HECM and proprietary options across lenders for your home. You're free to use any lender you like.
Frequently Asked Questions
What is a jumbo reverse mortgage?
It's a common name for a proprietary reverse mortgage. The CFPB describes proprietary loans as not federally insured and typically designed for borrowers with higher home values.
When would a jumbo reverse mortgage make sense?
Most often when a home is worth well above the HECM limit, which HUD set at $1,249,125 for 2026, or when a condo isn't FHA-approved. Compare it with a HECM and with other options first.
Is a proprietary reverse mortgage non-recourse?
Terms vary by lender. HECM non-recourse protection comes from federal rules. Ask each proprietary lender, and get the answer in writing.
Does a proprietary reverse mortgage have FHA mortgage insurance?
No. It's not FHA-insured, so there's no FHA premium. The lender sets its own rate and fees, so compare the full cost.
Can I get a proprietary reverse mortgage before 62?
It depends on the lender and state law. A HECM requires the youngest borrower to be 62. Ask each lender what applies in California.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
Loans are arranged through Maggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307. This is not a commitment to lend. All loans subject to credit approval and property qualification. Equal Housing Lender.
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